Under a system of flexible exchange rates, which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market?
a. a decrease in domestic interest rates
b. an increase in foreign interest rates
c. domestic inflation of 10 percent while the nation's trading partners are experiencing stable prices
d. stable domestic prices while the nation's trading partners are experiencing 10 percent inflation
D
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Homogeneous products are indistinguishable from each other.
Answer the following statement true (T) or false (F)
The longer the time period that suppliers have to adjust to price changes, the
A) greater will be the price elasticity of supply. B) lower will be the price elasticity of supply. C) lower will be the price elasticity of demand. D) greater will be the price elasticity of demand.
The highest tariff rates in U.S. history were the result of the
a. Reciprocal Trade Agreements Act of 1934. b. Hawley-Smoot Tariff of 1930. c. Tokyo Round of 1970. d. Uruguay Round of 1986.
The real risk-free interest rate is determined by:
a. Consumer and business demand. b. Supply and demand forces in the real loanable funds market. c. International supply and demand for domestic currency in the foreign exchange market. d. The size of the government debt. e. None of the above.